Reserve Bank of India imposes Monetary Penalty on two Payment System Operators

Case Brief

The Reserve Bank of India imposed monetary penalties of Rs 100 lakh each on two Payment System Operators: One Mobikwik Systems Private Limited and Spice Money Limited. The action was taken under Section 30 of the Payment and Settlement Systems Act, 2007 after RBI found that the entities had not complied with directions relating to the net-worth requirement for Bharat Bill Payment Operating Units (BBPOUs). RBI said the penalties were based on regulatory compliance deficiencies and were imposed after considering the entities’ written responses and oral submissions.